A comparative balance sheet and income statement is shown for Cruz, Inc.

CRUZ, INC. Comparative Balance Sheets December 31, 2015

2015

2014

Assets

Cash

$

94,800

$

24,000

Accounts receivable, net

41,000

51,000

Inventory

85,800

95,800

Prepaid expenses

5,400

4,200

Total current assets

227,000

175,000

Furniture

109,000

119,000

Accum. depreciationFurniture

(17,000

)

(9,000

)

Total assets

$

319,000

$

285,000

Liabilities and Equity

Accounts payable

$

15,000

$

21,000

Wages payable

9,000

5,000

Income taxes payable

1,400

2,600

Total current liabilities

25,400

28,600

Notes payable (long-term)

29,000

69,000

Total liabilities

54,400

97,600

Equity

Common stock, $5 par value

229,000

179,000

Retained earnings

35,600

8,400

Total liabilities and equity

$

319,000

$

285,000

CRUZ, INC. Income Statement For Year Ended December 31, 2015

Sales

$

488,000

Cost of goods sold

314,000

Gross profit

174,000

Operating expenses

Depreciation expense

$

37,600

Other expenses

89,100

126,700

Income before taxes

47,300

Income taxes expense

17,300

Net income

$

30,000

1.

Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2015?

Retained Earnings
Beg. bal.
End. bal.	0

2.

Assume that no additional notes payable are issued in 2015. What cash amount is paid to reduce the notes payable balance in 2015?

Notes Payable
Beg. bal.
End. bal.	0